UK Sport has been given a 29% increase in funding in the government's autumn Spending Review.
The agency, which looks after Britain's elite Olympic and Paralympic athletes, was fearing a cut to its budget.
However, together with National Lottery funding, its income should now reach around £148m in the years building up to the 2020 Tokyo Olympics.
The government says it is committed to building "on the success of Olympic and Paralympic games at London 2012".
Chair of UK Sport Rod Carr welcomed the announcement, saying: "This clearly demonstrates the government's continued commitment and confidence in UK Sport's strategy to deliver results at successive Olympic and Paralympic Games and our world-class major events hosting ability."
Chancellor of the Exchequer George Osborne said extra support would also be given to the bids to host the Road World Cycling Championships and the 2021 Rugby League World Cup.
And there was good news for the UK Anti-Doping agency, which will have its budget increased by £400,000 (approximately 7%) despite previous fears that the body could see its funding reduced by up to 25%.
|Analysis - BBC sports editor Dan Roan|
|"At a time when public spending is under such pressure, and with sports agencies braced for anticipated cuts of around 30%, this represents a major result for the Department of Culture, Media & Sport.|
|"UK Sport, Sport England and UK Anti-Doping will be relieved and probably surprised that their Exchequer funding has actually increased - a sign, it seems, that sport is valued by government, especially when it produces medals and national glory.|
|"However, community sport depends much more on local authority funding than it does on Sport England. And with a 24% cut to local government grant funding, non-statutory leisure budgets are bound to continue to dwindle.|
|"This is a crucial time for sports policy; participation rates have been falling, obesity is rising, and a new national sports strategy will be unveiled in the coming weeks. Despite this good news today, the pressure is still on our sports agencies."|
Sports minister Tracey Crouch said: "This settlement recognises the wider value of sport in society and how it plays an important role in boosting the economy.
"The increase in funding will support our elite athletes in the run-up to the Tokyo 2020 Olympic and Paralympic Games, grow the grassroots to get more people involved in sport and promote clean sport in the UK and beyond."
The extra funding was also welcome by Emma Boggis, chief executive of the Sport and Recreation Alliance.
"Our elite athletes have an incredible record of success," Boggis said.
"That success is good for the country in lots of ways - not least increasing national pride, creating role models and generating economic benefit through the continued delivery of major events in the UK."